Strategic ways to scale

[Paul Lucenti]

We have purchased 8 investment properties over the last 2 years, we strictly rent them out with section 8. 

The goal is to scale our business 2x over the next 3 years which we believe is very doable. There are many ways to take this journey from here however we realized our best way is getting outside investors to come in and help us purchase the property, then give them a fixed % over a period of time or even equity.

If anyone has been in this position before, what's another creative way we can scale? Is this a forum to meet outside investors that would be interested in doing something above? 

Thanks for reading - and if you leave a response we appreciate that as well

[Stuart Udis]

@Paul Lucenti It is common to equate acquiring more properties to scaling and many rely on buying lower tier market/neighborhood section 8 rentals to achieve this goal. I understand why this is the choice asset for many: they are inexpensive with no barrier & easily financed (easily attainable).  Here's the problem: They are not a sustainable asset for most to own; they are difficult and costly assets to exit through a sale; if you achieve favorable refinances, you may be able to use those funds to buy other (hopefully better assets) but are now faced with operating highly leveraged bad assets. 

I do agree raising outside capital can help with scaling. Ultimately responsibly using leverage (both equity and debt), implementing systems and buying good assets with realizable equity  is how you scale while operating a sustainable real estate business. This is where your focus should be, not buying section 8 rentals or focusing solely on increasing your portfolio by 2x, 3x etc. It means nothing. If you have access to outside capital/equity, you already have an advantage over most. Don't waste that resource on bad assets.